Question

A WAY TO ANALYZE WHETHER DEBT OR LEASE
FINANCING WOULD BE PREFERABLE IS TO:
Select one:
a. COMPARE THE EFFECTIVE INTEREST
COSTS INVOLVED FOR EACH ALTERNATIVE.
O
b. COMPARE THE NET PRESENT VALUES
UNDER EACH ALTERNATIVE, USING THE
COST OF CAPITAL AS THE DISCOUNT RATE.
O
c. COMPARE THE NET PRESENT VALUES
UNDER EACH ALTERNATIVE, USING THE
AFTER-TAX COST OF BORROWING AS THE
DISCOUNT RATE.
O
d. COMPARE THE PAYBACK PERIODS FOR
EACH ALTERNATIVE.​

Answer 1

Answer:

c is the correct answer hope it helps you

Answer 2

Answer:

compare the payback periods